Cineworld Group plc was founded in 1995 and is now one of the leading cinema groups in Europe. Originally a private company, it re-registered as a public company in May 2006 and listed on the London Stock Exchange in May 2007. Currently, Cineworld Group plc is the only quoted UK cinema business.
In December 2012, the Group acquired the Picturehouse chain of cinemas consisting of 21 cinemas, and in February 2014, the combination with Cinema City completed, creating the second largest cinema business in Europe (by number of screens). The enlarged Group now has 217 sites and a total of 2,000 fully digital screens. Our portfolio includes four out of the ten highest grossing cinemas in the UK and Ireland. We pride ourselves on outstanding picture quality and atmospheric surround sound; the soft, deep-down comfort of our modern seating; the crunch of our popcorn; and, most importantly, the friendliest customer service around. All our sites are digital, and we are one of the market leaders in 3D, a format which will become increasingly important.
In 2014, Cineworld accounted for 82.9 million admissions, had revenues of £619.4 million and an Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) before exceptional items of £126.6 million.

Cineworld upgraded by Canaccord to 'buy'; price target rises to 350p
12:38 pm by Ian LyallPerhaps more importantly, Canaccord has hiked its price target to 350 pence a share from 280 pence.



Cineworld (LON:CINE) has been upgraded by Canaccord to ‘buy’ from ‘hold’ following the company’s capital markets event yesterday.

Analysts were told Cineworld is targeting four areas that will enhance growth: customer acquisition and retention, improving the cinema experience, addressing its operational performance and growing the portfolio.

Although it has maintained its full-year earnings forecasts it has tweaked higher its underlying earnings (EBITDA) prediction by 2% for 2014 and then added between 5 and 11.7% for the years 2015-17.

Perhaps more importantly, Canaccord has hiked its price target to 350 pence a share from 280 pence.

“The current share price does not reflect the underlying growth dynamics Cineworld offers,” analyst Wayne Brown said.

“Yesterday’s investor day highlighted the strong structural growth available supported by a strong track record of delivery.”

Earlier Investec repeated its ‘buy’ advice and 272 pence a share price target.

At 12.35pm, the stock was changing hands for 244.5 pence, valuing the group at £350mln.

http://www.edisoninvestmentresearch.co.uk/researchreports/CineworldQV301112.pdf

ACQUISITION OF PICTUREHOUSE
RNS
RNS Number : 8629S
Cineworld Group plc
06 December 2012



6 December 2012



CINEWORLD GROUP PLC ANNOUNCES ACQUISITION OF PICTUREHOUSE

Cineworld Group plc ("Cineworld" or the "Group") today announces that it has acquired City Screen Group, which trades as Picturehouse ("Picturehouse"), for £47.3 million in cash. Picturehouse is the UK's leading independent cinema operator with 21 sites (60 screens), including The Duke's at Komedia in Brighton which opens today. As part of the transaction, Cineworld has also acquired Picturehouse Entertainment, the distribution arm of Picturehouse.

Transaction highlights

· Strengthens Cineworld's position in a high value, high growth segment of the UK cinema market

· Adds a complementary portfolio to Cineworld's existing footprint, from both a geographic and strategic perspective

· This acquisition will enable Picturehouse to unlock more than 10 new locations already in the pipeline

· Picturehouse will operate as a separate business entity within the Cineworld Group and will continue to be run by the existing Picturehouse management team

· Builds Cineworld's food and beverage retail capabilities

· High single digit enhancement to earnings per share expected in 2013

Commenting on the acquisition, Stephen Wiener, Chief Executive Officer of Cineworld, said:

"We are delighted to welcome Picturehouse to the Cineworld Group. This acquisition gives us an opportunity to accelerate our growth by reaching new audiences in a high value and growing part of the market. We recognise that Picturehouse is valued by its customers and we look forward to supporting the business through the next phase of its development."

Picturehouse is led by founder director Lyn Goleby, who is supported by a highly experienced team. Lyn Goleby and her team will continue to lead the development of the Picturehouse business under Cineworld's ownership. Lyn Goleby will continue in her role as Managing Director of Picturehouse.

Lyn Goleby said:

"The opportunity to be part of a public company is great news for Picturehouse and our customers. We are known for our high quality city centre cinemas and our distinctive, wide-ranging programming. The unique character of Picturehouse cinemas will remain and our team will continue to bring the widest range of film to customers. This acquisition by Cineworld will accelerate the development of further Picturehouse cinemas around the country."

Information on Picturehouse

For the year ended 31 December 2011, Picturehouse reported audited sales of £30.3 million, profit before tax of £2.5 million and gross assets of £35.0 million. Picturehouse reported audited sales of £26.5 million and £25.3 million in the years ended 31 December 2010 and 31 December 2009, respectively.

For the year ending 31 December 2012, Picturehouse is expected to generate EBITDA of approximately £5.0 million. In addition, Cineworld expects to be able to generate at least an additional £1.0 million per annum through integration benefits and the full year effect of new sites opened in 2012. As part of the transaction, Cineworld will acquire Picturehouse's freehold property assets, which were valued at £9.0 million (as at 31 December 2011).

Prior to today's announced transaction, Picturehouse's primary shareholders were Arts Alliance, Lyn Goleby and Albion Venture Capital Trust.

Transaction financing

The acquisition values Picturehouse at £47.3 million on a cash and debt free basis. Consideration for the acquisition is in cash, which is being funded from existing undrawn bank debt facilities, assumed debt and the cash proceeds from a proposed issue of up to 6.85 million new ordinary shares, representing approximately 4.8% of Cineworld's current issued ordinary share capital, mostly via a placing to institutional and certain other investors of up to 6.40 million new ordinary shares of one pence in the Company (representing approximately 4.5% of Cineworld's current issued share capital) (the "Placing"), also announced today.

Stephen Wiener, CEO of Cineworld, Philip Bowcock, CFO of Cineworld, and Non Executive Directors Martina King, David Maloney, Eric Senat and Peter Williams intend to subscribe for, in aggregate, approximately £250,000 of new ordinary shares in Cineworld in connection with the Placing. Separately, as part of the acquisition arrangements, Lyn Goleby has agreed with Cineworld to reinvest a portion of her sale proceeds by subscribing for £1.0 million of new ordinary shares in Cineworld at the price per ordinary share at which shares are placed with placees in the Placing.

Current trading

Cineworld continues to trade in line with market expectations for the financial year ending 27 December 2012.

Conference Call

A conference call for analysts and investors will be held at 8.00 a.m. GMT on 6 December 2012. A presentation will be available at http://www.cineworldplc.com/.

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Been a great share to trade of late, with the swings.

A buy in this weeks shares mag. The £47.3 million acquisition of the picture house chain could lead to future earnings upgrades, even after accounting for the higher estimates made by analysts on the back of last Thursdays deal. Cineworld should be able to improve profit margins at Picturehouse through its buying power. The deal adds 21 sites to the £365 million existing 80- strong estate in the UK and Ireland.
The acquisition will run separately by existing management. Trades on 10.9 earnings which looks cheap given its consistent record of decent earnings growth and attractive income proposition, trading on a prospectivev 4.7% dividend yield.

James Bond hit Skyfall has become the first movie ever to take a nine-figure sum at the UK box office.

The film, already the most successful movie hit in the UK, has now passed the £100 million mark in the year the 007 movies celebrated their 50th anniversary.

Daniel Craig's third appearance as Bond is still on general release more than two months after it first hit cinemas.

Globally it has taken more than one billion dollars, which amounts to in excess of £620 million.

Skyfall, which was directed by Sam Mendes, became the highest grossing film ever in the UK earlier this month when it overtook the £94 million generated by Avatar. The Bond film achieved the figure in just 40 days, while James Cameron's Avatar took 11 months to amass its total.

The 23rd 007 adventure sees suave Bond battling with villain Raoul Silva (played by Javier Bardem), who aims to take revenge on his former boss M (Dame Judi Dench).

Broker ups Cineworld forecasts after Hobbit and Skyfall wow fans
10:46 am by Jamie NimmoAn impressive line-up of movies hitting UK screens recently, including Skyfall and The Hobbit, helped fill cinema seats




An impressive line-up of movies hitting UK screens recently, including Skyfall and The Hobbit, helped fill cinema seats



Canaccord Genuity urged investors to tune into Cineworld (LON:CINE) ahead of the cinema operator’s update next Tuesday.

Wayne Brown, a tipster at Canaccord, believes the update will confirm his confidence that the group will meet, if not exceed, his full-year forecasts, thanks largely to an impressive line-up of movies hitting UK screens recently, including Skyfall and The Hobbit.

He also upgrades his earnings forecasts for 2013 in the wake of the acquisition of indie operator Picturehouse.

The analyst now believes earnings per share will come in at 22.6p, a 7% increase on his previous estimate.

“The acquisition of Picturehouse not only provides an additional brand by which it can target city based locations but it diversifies the group’s revenues away from blockbuster films providing a greater degree of revenue visibility,” he said.

“By keeping the management of Picturehouse within the group, it broadens the retail skill set within Cineworld which should prove useful as the group explores innovative ways by which to improve its wider retail offer as part of its enhanced customer service programme.”

Brown keeps his ‘buy’ rating and 350p target price against the current price of 263p, adding that the film slate looks strong next year with a wider range to drive margins

Merger Update
RNS
RNS Number : 2822U
Office of Fair Trading
24 December 2012

Initial undertakings



The OFT has today accepted hold separate undertakings given by Cineworld Group plc and City Screen Ltd under section 71 of the Enterprise Act 2002. The undertakings are without prejudice to OFT's ongoing investigation into the completed acquisition by Cineworld Group plc of City Screen Ltd.

Trading Statement
RNS
RNS Number : 0143V
Cineworld Group plc
08 January 2013



CINEWORLD GROUP PLC
Trading Update

Cineworld Group plc ("Cineworld" or "the Group") is pleased to provide the following trading update at the commencement of the close period prior to the announcement of its preliminary results for the 52 weeks ended 27 December 2012 which is due to be made on 7 March 2013.

Revenues for the 52 weeks to 27 December 2012 (excluding Picturehouse)



% change vs. prior year





Total Revenues
+ 2.4%






Box Office
+ 3.9%

Retail
+ 0.8%

Other Income
- 7.3%



Overall we anticipate that profitability for the year will be in line with market expectations.

The UK and Ireland cinema industry enjoyed a satisfactory year in 2012. Despite the distractions from the Queen's Diamond Jubilee celebrations, the European Football Championship and the London Olympics, industry gross box office grew by 2.8% against the previous year (Source: Rentrak/EDI). As expected, the full year was weighted towards the fourth quarter and strong admission numbers alleviated the expected slower performance during the third quarter. Included in the fourth quarter was "Skyfall" which, to date, has grossed over £100m in the UK and is the highest grossing film in the history of UK and Ireland cinema. There were also strong film performances in the quarter from the concluding film of the Twilight series "Twilight Saga: Breaking Dawn (part 2)" and "The Hobbit".

Cineworld's box office benefitted from a better average ticket price, up 5.0% against prior year and offset by 1.1% lower admissions. Overall box office market share in UK/Ireland was maintained at 24.7% for the year (2011: 24.8%) (Source: Rentrak/EDI).

Spend per person for the year increased by 1.9% compared with the previous year, more than offsetting reducedadmissions volume.

As previously outlined, the decline in other income for the year was due to the removal of the booking fee and comparatively lower 3D glasses sales, resulting from fewer 3D films shown in the period. Screen advertising revenues were marginally ahead as compared with the prior year.

We were pleased to open a new seven screen Cineworld cinema in Aldershot at the end of October and this and our recent acquisition of Picturehouse cinemas, on 6th December 2012, means we start 2013 with 101 cinemas and 878 screens. We have plans to open multiplex cinemas under the Cineworld brand in Wembley, Gloucester and St Neots during 2013. Picturehouse brings further opportunities for growth within a specialised sector of the cinema market under the Picturehouse brand and management. Since acquisition Picturehouse has traded in line with expectations.

There is an attractive film release programme for 2013 which includes "Les Miserables", "Star Trek", "Iron Man 3" and "The Hobbit part 2". With our plans for continued expansion, we look forward to delivering further value to shareholders in the forthcoming year.

-Ends-

Questor share tip: Cineworld offers good growth and income

With the canny purchase of an independent cinema operator in December, Cineworld added another source of growth. Yesterday’s trading update showed the group is still attractive for investors seeking both income and capital growth.

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Cineworld: Panmure Gordon moves target price from 229p to 238p and maintains a sell recommendation.

Canaccord suggests investors buy a ticket for Cineworld (LON:CINE) ahead of its preliminary results next Thursday.

While most focused on the impact of Skyfall, the latest instalment in the James Bond series, Canaccord saw the moderate pick-up in advertising as a key potential catalyst.

“If this momentum continues into 2013, with DCM (the group’s advertising JV) benefiting from the UK cinema market now being predominantly digital, then this could provide further forecast momentum not contained within our numbers,” said the broker.

The strong line-up of films so far in 2013, which has included Quentin Tarantino’s Django Unchained, Les Misérables and Wreck it Ralph, leads the broker to believe box office sales have been boosted by around 20-25% from 2012.

It urges investors to take advantage of the recent underperformance from the shares.

In the Mail on Sunday business section -


Cineworld set for £39m profits as viewings soar


Skyfall is likely to have been a big hit for Cineworld, which unveils full results on Thursday.James Bond's latest outing broke british box office records late last year
and will help to boost the cinema chains profits to an expected £39.2m up from £34.6min 2011.Turnover is likely to be up by 2.5% to £363.1m.
There has also been a revival in cinema advertising, the first since 2008. But investors will be keen to hear about current trading and analysts reckon its running upto 25% ahead of the same time last year. This is due to a strong showing from films such as Les Miserables and D jango Unchained. In the year ahead Cineworld is expected to enjoy an increase in turnover of up to 14% as it speeds up new cinema openings.New subscribers to its loyalty scheme are expected to have risen by 15% during the past year.

As of Mar 02, 2013, the consensus forecast amongst 9 polled investment analysts covering Cineworld Group plc advises that the company will outperform the market. This has been the consensus forecast since the sentiment of investment analysts deteriorated on Dec 09, 2011. The previous consensus forecast advised investors to purchase equity in Cineworld Group plc.

Cineworld Group PLC (CINE:LSE) set a new 52-week high during Tuesday's trading session when it reached 282.98. Over this period, the share price is up 40.88%.

Final results 7 March

Cineworld Group: Canaccord Genuity shifts target price from 350p to 360p, while its buy recommendation is reiterated. Investec moves target price from 295p to 310p and retains a buy rating.

Final Results


Other key highlights for Cineworld Cinemas (excluding Picturehouse)



· Cineworld Cinemas' box office market share of 24.7% (2011: 24.8%) in UK and Ireland (Rentrak/EDI).

· Cineworld Cinemas' box office up 3.9% at £251.6m against 2011;

· Admissions 1.0% lower than 2011 at 47.8m;

· Average ticket price per admission up 5.0% to £5.26 (2011: £5.01) with higher average retail spend per person at £1.72 (2011: £1.69);

· Acquisition of the Picturehouse Group of cinemas on 6 December for £47.3m;

· Opening of a new seven screen cinema at Aldershot;

· Digital conversion fully completed during summer 2012;

· IMAX screens increased to eight cinemas








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